WEX Co-founder Jailed Over Embezzlement of Customer Funds

WEX Co-founder Jailed Over Embezzlement of Customer Funds


2 months in the pastTue Sep 26 2023 08:13:37


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  • WEX co-founder Aleksey Bilyuchenko has been jailed for three and a half of years and fined $33 million for embezzling the funds on the trade
  • Bilyuchenko claimed that he had been forced to hand over $450 million in customer funds to Russian secret provider brokers
  • The Russian is wished by the US for hacking MtGox in 2011

The co-founding father of the defunct WEX trade, Aleksey Bilyuchenko, modified into once now not too long in the past jailed for three and a half of years for embezzling a full bunch of millions of greenbacks in cryptocurrencies when the trade collapsed in 2018. Bilyuchenko, who helped operate the prison trade BTC-e till it modified into once seized by U.S. authorities in 2017, modified into once also fined 3.1 billion rubles ($33 million). Bilyuchenko modified into once identified this three hundred and sixty five days as one amongst the hackers of MtGox in 2011 which helped abolish the trade.

Bilyuchenko Claimed Russian Safety Agents Took the Money

Bilyuchenko co-founded WEX after the seizure of BTC-e in 2017, constructing the assert from a backup of BTC-e’s database he had retained. The positioning started smartly, however the crypto market smash of 2018 seen utilization and earnings plummet and in December it modified into once taken offline. Extra concerningly, $450 million price of cryptocurrencies on its books vanished with out a trace. 

Bilyuchenko modified into once naturally suspected, however when clients in Russia and Khazakstan began to file police reports, suspicion fell as an exchange on the actual person that Bilyuchenko had save in the new seat: CEO Dmitry Vasiliev. When Bilyuchenko modified into once summoned to testify as portion of the investigation into Vasiliev he told a sexy story: in April 2018 one amongst his monetary backers, Konstantin Malofeyev, assert a entice in which Russian safety provider operatives coerced Bilyuchenko into handing over your complete WEX holdings on grounds of nationwide safety. 

Only afterwards had Bilyuchenko came across out that they had been imposters hired by Malofeyev. 

Airfield Arrest

Bilyuchenko modified into once now not arrested, with the authorities as an exchange zeroing in on Vasiliev, however it indubitably didn’t seize them long to attain that something about Bilyuchenko’s story didn’t add up, and he modified into once arrested in March 2022 at a non-public Moscow airfield on charges of misappropriating the WEX funds.

Gripping officers came across 190 million Russian roubles ($1.7 million) in cash in two suitcases in his possession while officers shopping residences belonging to Bilyuchenko and his alleged accomplices seized but every other 50 million roubles ($425,000), $1 million and €70,000 in cash to boot to laptop equipment, hardware crypto wallets, luxury goods and documents.

Bilyuchenko modified into once charged with embezzlement and came across responsible, which meant he confronted as a lot as a decade in jail. In a intelligent plod, he appealed to Russian President Vladimir Putin and Defense Minister Sergei Shoigu for leniency. Whether this had an impression or now not is now not identified, however the three-and-a-half of-three hundred and sixty five days sentence he got is surely on the lighter facet for his offence.

Whereas he modified into once waiting for sentencing this summer, Bilyuchenko modified into once one amongst two males identified as the hackers of the MtGox trade in 2011 that seen 650,000 bitcoins stolen from the trade. In consequence, he’s now on the FBI’s most wished list, guaranteeing that he’ll practically no doubt no doubt now not plod away Russia.

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